Vodacom Tanzania’s net profit experienced a significant increase of 182.7 percent to Sh117.8 billion in the six months ending September 2026. This growth was primarily driven by strong performance in mobile money and data services. The company's service revenue rose by 20.8 percent to Sh1.067 trillion, with M-Pesa and mobile data businesses contributing substantially to this growth.
The telecommunications company's financial results, released on November 6, revealed that M-Pesa revenue increased by 26.2 percent to Sh443.3 billion, while mobile data revenue grew by 24.6 percent to Sh319.2 billion. Vodacom Tanzania invested Sh246 billion in network and technology infrastructure during the reporting period. This investment included the commissioning of an upgraded M-Pesa platform to enhance transaction capacity and service reliability.
Vodacom Tanzania Chief Executive Officer Philip Besiimire attributed the results to increased customer uptake and usage of the company’s services, alongside continued investment in infrastructure. He stated that the half-year results demonstrated what happens when growth and purpose align. More Tanzanians chose Vodacom's services, used more of what was offered, and that reflected in revenue, profit, and cash, all while the company kept investing in the network and the M-Pesa platform.
The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 33.1 percent to Sh425.8 billion. The EBITDA margin improved by 4.2 percentage points to 39.5 percent. Operating free cash flow rose by 64.3 percent to Sh90.3 billion, despite a 63.1 percent increase in capital expenditure. The net profit margin also improved by 6.3 percentage points to 10.9 percent.
Vodacom Tanzania's mobile data growth was partly attributed to a 15.3 percent increase in smartphone users and higher 4G traffic. This growth was supported by the expansion of its combined 4G and 5G network coverage. M-Pesa recorded strong growth, with transaction values and volumes both increasing by nearly 40 percent during the six-month period.
The upgraded M-Pesa platform commissioned during the period is expected to accommodate increasing transaction volumes and improve service reliability as mobile money usage expands. Services beyond basic connectivity contributed 47.9 percent of total service revenue, an increase of nearly two percentage points. This reflects the growing contribution of digital and financial services to the company’s business.
Vodacom Tanzania Finance Director Hilda Bujiku noted that the results demonstrated improved profitability and cash generation despite increased investment in infrastructure. The company paid its final dividend for the 2025/26 financial year on October 15, amounting to Sh23.91 per share, or a total of Sh53.6 billion. The results strengthen the company's capacity to invest in the business and deliver shareholder returns.
Key points
- Vodacom Tanzania's net profit surged 182.7 percent to Sh117.8 billion in the six months to September 2026.
- The company's service revenue increased by 20.8 percent to Sh1.067 trillion.
- M-Pesa revenue rose by 26.2 percent to Sh443.3 billion, while mobile data revenue grew by 24.6 percent to Sh319.2 billion.
